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Historical origins of the mortgage

The mortgage in the U.S.

Multi Mortgage

Non-payment mortgage

A mortgage is a loan made to finance the purchase of real estate, usually with specified payment periods and interest rates. The buyer (debtor mortgage) gives the lender (mortgagee) a right of arrest on the property as collateral for the loan.

Original principal balance: The amount of money the lender receives or provides for its investment. Generally the money that the lender provides capital will typically have a lower value than the value of the mortgaged property, so that if you fail to comply with the payments and is the respective foreclosure, the money obtained by selling in an auction is used to repay the debt.

Deadline: The time period is established for the payment of debt. The debt is paid periodically, as agreed, usually in monthly payments, to cancel the principal balance, interest will accrue during the period and pay the surcharges in place.

Interest: An extra amount you pay to who provides the loan funds as profit by using their money in their own homes as investments.

The interest may be:

Fixed: There will be a percentage extra year, which does not vary during the period agreed for the cancellation of the loan.

Adjustable: All interest is an extra payment of a percentage of the value of borrowed capital, but adjustable is reviewed periodically to adapt to the conditions and values of the current market movements.

A large majority of new mortgages signed in the U.S. are fixed for a 3 to 5 years and the remaining 27 or 25 years are variable. This is causing many losses involving mortgage 'Foreclosures' court judgments or mortgages and auctions that have led the U.S. housing market to the so-called credit crunch 2007.

In order to prevent the delivery of hard-payment mortgages, many non-profit organizations related to the real estate industry in the United States have implemented codes of ethics designed to define the supply of loans in a fair and reliable.